Convention Wins

As a matter of fact, Europe has always held the top IMF job, while the World Bank's top post has always gone to an American as a part of convention dating back to the creation of IMF and World bank after World War II. A good convention followed by the mighty powers, although this time the developing and some of the developed ones in other regions tried to grab the position in IMF for their ministers like in the case of Singapore, Mexico and India. The latter didn't try seriously knowing very well that Montek Singh Ahluwalia was over-aged although he was eagerly working for it.

The 24-member Board of the International Monetary Fund on Tuesday, June 28, 2011 elected French Finance Minister Christine Lagarde as the new Managing Director of the global lender with the solid support of major emerging powers such as Brazil, China and Russia.

AWAITED AWAKENING

India has made rapid progress both in politics and economics since Independence. Constitutiion of India has enabled peaceful and fruitful elections to the Lok Sabha and State Assemblies in the last six decades. Several political parties both at the national and regional levels have sprung up as an alternative to the Indian National Congress which mainly fought for India's Independence. India has stood as one nation in times of emergency both on the borders and within the country. Initially the Government of India under the leadership of Pandit Jawaharlal Nehru and subsequently under different other Prime Ministers laid more emphasis on centralised planning through the Planning Commission of India in the form of Five Year Plans. Under the leadership of Sri P.V.Narasimha Rao as Prime Minister, the economy was liberalised, the foreign capital was allowed to flow freely as also the imports of capital goods and consumer goods and similarly the export-base was widened. One could never easily ignore the change that has taken place since early 1990's.

All the same economic growth has widened the gap between the rich and the poor and the millions of people living below the poverty line have increased tremendously in numbers over these years. It is however heartening to note that the increase in the sheer strength of middle class and their purchasing power is a phenomenon to reckon with. With the onset of Information Technology and its Revolution, the reach of the common man and the educated class has registered a phenomenal growth. The social net-working as also the knowledge of the individuals has multiplied several times. The sweep of the print and electronic media is so deep and wide that each and every piece of news or event gets the immediate attention of the citizens all over the nation. As the days pass by, the vulnerability of the rulers and the government functionaries is visible beyond barriers. Some of the senior ministers in the Government like Mr. A.K. Antony are compelled to acknowledge the advent of Transparency Revolution as the editorial of the Times of India proclaimed on Friday June 10, 2011. The editor has correctly judged the movement of Civil Society headed by Mr. Anna Hazare as a significant development at present and called for greater probity on the part of the Government to redeem itself. We should also agree with the editor that this time the anti-corruption movement may be more successful due to the rise of middle class.

Inflation Challenging the RBI too?

Mr. K.C. Chakrabarty, the Deputy Governor of Reserve Bank of India (RBI) told the media the other day that RBI did not possess a majic wand to tame inflation. The monster inflation refuses to bow before the RBI despite 10 upward revisions of key policy rates in the last 18 months.

If monetary and fiscal policy measures are found wanting to contain such a monster, the Government of India and the State Governments are certainly required to take a holistic approach for this purpose. Inflation could be caused by rising input costs for agriculture, manufacturing, construction and service sectors. The input costs in turn could be influenced by other general economic goods and services needed for production of those original inputs. Each one is chasing the other and who does it first is immaterial, It is however quite necessary to break the viscious circle so that cost-push inflaction doesn't become a permanent cause of inflation in future. The common man is affected mostly by the basic consumer goods, namely, food grains and sugar, pulses and oils, vegetables and fruits, fuels such as petrol and diesel. Of late, the food inflation is so severe that the common man and especially the urban consumers are badly hit and worried. This is the reason why the Government has recently recognised the need for compiling a separate food inflation index. The double digit inflation mainly caused by such food inflation refuses to come down on subsequent periods despite the concern expressed and action mooted by the economic advisors and agencies attached to the Government. Normally, when the inflation index is announced and commented upon favourably on a weekly basis, the public seem to take it with a sense of of satisfaction, but actually the initial figures obtaining soon after basic period can't take away and indicate the actual impact already registered and the prices pushed above the common man's reach.The supply side of inflationary pressures in agriculture sector is to be watched carefully and remedial measures launched and executed by the Governnment from time to time so that the general inflation is kept under control.

Kaliyuga Avatar - 2: Uncrowned King of Millions

It seems that the secret chamber of "Bhagwan" Sri Sathya Sai Bai is found to have contained a massive cash amount of Rs.11,56,47,049.50, some 98 Kgs of gold jewellery and 307 Kgs of silver ornaments inside the three room mandir.

Godman actually turned out to be a gold-and-silver-minded man. It seems several foreign devotees had donated boxes of sweets, chocolates and other eatables to Baba in addition to the golden idols of Lord Krishna and other deities. He used to sleep on the silver cot embedded with gold ornaments. The plates, glasses and other articles used by him were also made of gold and silver. It is also reported that only a few of the high profile devottees had an opportunity to have dinner with Baba.

It appears Baba was having a real good time and lavish life, thanks to his devotees and followers. Normally, Godmen are saints supposed to have moderate living conditions. The way this Baba had accumulated wealth and stored it in his abode literally throws a challenge to the faith and confidence exhibited by his own devotees. Such a phenomenon would only indicate the childhood ambition and craze for such worldly things the Baba must have undergone as a child. After all a human being is subject to all sorts of human desires whether a brahmachary / bachelor or a family man. It is still more amazing that the high profile VIPs both from the national capital, like the Prime Minister, the Chairperson of UPA and from other centers like the Governor of the State, the Chief Minister and other VIPs rushed to the Baba's ashram on his death. These VIPs were not perhaps aware of the living style of this Baba before they landed for mourning. Atleast the VIPs are supposed to know the whereabouts of such a Godman before paying homage to him so that the public would not entertain any wrong impression about those VIPs as well.

Suicides in Bundelkhand (U.P)

Times of India has found that 519 people committed suicide in Bundelkhand region (U.P) in the first five months of this year and the Allahabad High Court has taken cognisance of this report and directed the central and state governments to file a status report on this issue by July 15, 2011. One should appreciate the concern expressed by the court and expect the governments to come out with the actual position obtaining on the ground. We keep receiving similar suicide reports from various parts of the country like Vidarbha, Andhra, Maharashtra, Tamil Nadu and Orissa from time to time despite the relief measures taken by those governments and the central governemnt every now and then.

Unfortunately the programmes planned and executed half-heartedly by the ministers and the bureaucrats are temporary and unsuccessful because they don't go into the roots of the problem and find a permanent solution. Money is spent haphazardly with loopholes for pilferage and defective implementation. Nobody is accountable and answerable for the budget amount spent on such schemes. Governments keep coming and going, officers come and get transfered. Who is there to finally ensure a permanent remedy to these farmers who are harassed and tortured by the nature and monsters of the governance.

Unless and until a change in the mind-set and the outlook of the concerned authorities takes place in a realistic and holistic manner, any amount of control and pressure from any quarters including courts will not deliver goods in reality.

School Education in a Mess?

Uniform syllabus for school education from the first standard to tenth standard was a noble thought partially implemented by the previous D.M.K government and rightly supported by the state high court on the understanding that the students of Tamil Nadu will have the same syllabus in whichever school they study. The only problem the successor government and others feel is that some of the text books are reported to have study materials meant to commemorate actions and writings of some individuals on the basis of political powers they were enjoying at that time. The mistake lies with some of the so-called educationists who tried to flatter the powers-that-be at the cost of transparency and impartiality in the overall interest of the student community. The best course could have been to leave the entire exercise to the independent judgment of the genuine educationists. But it is easier said than done when the whole society has been politicised so much by now.

The matter had to reach the court of law - both to the high court and the supreme court. The result is that the schools had reopened late already by two weeks and also without text books for the teachers to teach and the children to read. The text books for the First standard and the Sixth standard too are not ready perhaps due to the confusion created in the meanwhile. Similarly the other classes will have the syllabus decided by the expert committee headed by the chief scretary in two weeks and endorsed by the high cort in the third week. That means the text books for other classes will not be ready by another 4-5 weeks. Well, this is the outcome of our commissions and omissions by the concerned authorities. Some intelligent guess by the DMK governemnt could have avoided the whole episode and the pathetic plight of the students, the teachers and the parents.

Another pitiable episode is with regard to the entrance fees and donations collected by the school authorities from the parents. The tug of war is still going on between the parents, school managements and the government. What a mess we have created? Is it due democracy or mockery of the system contributed in the process by everyone in the state?

QUANTUM OF BLACK MONEY

Black money is that money generated either by income that has not been taxed or through criminal means like drugs, arms running, ransom to kidnappers, bribes taken by politicians, bureaucrats and so on. One should not paint all black (slush) money with one brush (Times view dated June 8, 2011). There are two types of black money generated and stored abroad, one is the money sent out in the past because of ridiculously high tax rates and realistically low travel limits for foreign currency (as low as $500) and so on. The second part of the black money abroad - possibly the larger part - has been generated by blatant criminal activities like political bribery, proceeds from smuggling drug money etc.

The first part can be tackled by a onetime amnesty scheme which recognises the legacy problem and encourages people to just pay taxes at correct rates and legitimize the money. Otherwise if this entire money comes back, it would harm the economy by hardening the rupee rate affecting exports, igniting inflation and so on. On the other hand, the treatment of the money generated by corrupt politicians, bureaucrats or by criminals has to be in a different manner. We need to sign disclosure pacts with foreign governments to detect this black money and take every action permitted legally against those criminals. The battle against black money has to be naturally a continuous one. The scope for the usage of black money during elections has to be nipped in the bud by either the State funding the elections or the political donations taken through bank cheques and drafts. Every source of black money enjoyed and earned by the politicians or the babus exercising their discretionary powers in terms of granting licenses etc., at the Government level is also to be guarded against by limiting the powers of these players as much as possible.

Look at the irony of the world economy with 1% of the population holding more than 57% of total global wealth. It is also reported that as many as 40 countries are notoriously marketing themselves aggressively as tax havens. The estimation of actual quantum of black money is as nebulous as writing on the water. Several studies have been undertaken to quantify such black money from time to time. Way back in 1955 a noted economist Nicholas Kaldor estimated the quantum of black money as 4-5% of the country's gross domestic product (GDP) [roughly Rs.600 crore]. In 1969, the panel headed by Justice Wanchoo estimated the size of black money at Rs. 7,000 crore. Similarly, the National Institute of Public Finance and Policy under the chairmanship of Dr. Raja Chelliah in 1980-81 showed that the black economy accounted for 20% of GDP that is about Rs. 15 lakh crore now. Arun Kumar, professor of economics at Jawaharlal Nehru University estimates its size to be 50% of GDP [Rs. 39 lakh crores] in 2005-2006. The Global Financial Integrity Group says in its report (The Drivers and Dynamics of Illicit Financial Flows from India: 1984-2008) that India lost $ 213 billion in illicit flows and the present value of those flows are around $462 billion. The said report also indicates that this estimate is understated because of practical difficulties in capturing the extent of problem.

Politics in India

East India Company, a trading organization took the advantage of political turmoil prevalent in the country during 18^th century and conquered India. All other military and economic forces from Europe were defeated and thrown away from the sub-continent. India became a colony of the British. It was used as a perennial supplier of raw materials and a flourishing market for its industrial products. Sense prevailed on the British during the Great Mutiny of 1857 and the Crown took over the administration of India from the Company and appointed a viceroy to look after its affairs. Days passed. The first batch of national leaders learnt from the British books, European and American authors the meaning of Independence and the value of liberty, equality and fraternity. They raised the voice of Independence. There emerged a charismatic leader, the conqueror of Indian minds and hearts, the greatest soul after Buddha on this soil viz. Mohandas Karamchand Gandhi during the first half of 20^th century. He ruled supreme and guided the destiny of this nation for about three decades continuously and successfully till he breathed his last in 1948.

To fight the British and deliver independence was the sole and unselfish objective of the freedom fighters under the leadership of Mahatma Gandhi. The Indian National Congress, the party of Gandhi, Nehru and the masses was to convert itself into a social service organisation to usher in economic and social freedom for all the Indians. Unfortunately, the leaders and the workers of this great party shied away from this historic task but plunged into the corridors of powers to govern and administer this country straightaway. The persons who till the other day were leading processions, occupying jails and fighting for the great goal of independence were too happy to resist the seats of power. All their ideals and morals were set at naught the moment they joined the executive wing of the Government of India and started enjoying the perks of office. The Constituent Assembly was formed to deliberate and decide the fate of government the Indians were supposed to have for the future. All shades of opinion and groups in India were duly represented. The said Constituent Assembly gave us the Constitution of India which had the features of both union and federal forms of government. The idea was to have the advantages of both these forms. Gandhian principles and ideas were however accommodated under the Directive Principles of State Policy. The Constitution has had been amended many a time till now though it is a carefully worded and comparatively lengthy written constitution. There was a talk in the air and also debated at times unsuccessfully about the need to convert it into a presidential form of government.

With the passage of time and working of this Constitution, one notices some drawbacks in Indian polity. When the great leaders of freedom struggle became the masters of Indian Government, their followers too adopted their style. The new batch of leaders and followers learnt the art of government from their seniors. When the second generation entered politics their schemes of things were entirely different. The hardships of yester years during freedom struggle became the known but unimportant things of the past. How to win an election through fair or foul means and occupy the seat of power under some pretext or other became the one and only aim of politicians. It is true of all the politicians of all times. If one wants to find a selfless politician among the lot in the country now it is like digging the earth in search of gold in Kolar mines.

Man is selfish by nature. However, it is the duty of our nation and of our constitution at the moment to search out selfless and less ambitious human beings as far as possible and position them on seats of power. Unfortunately our constitution has failed to pick them up for such a task. In other words, we have misused our constitution to further the interests of some selfish and power-hungry politicians. Under the Constitution of India the rulers and the law-makers are elected at regular intervals. The permanent executive and the judiciary are selected on the basis of merit and distinction and then appointed. The cream of the Society normally entered the second category viz. the permanent executive and the judiciary due mainly to the security of tenure and fixed remuneration. With few exceptions here and there we can imagine the nature of lot available in the first category. In fact the caliber and morals of the first category should be richer and better than that of the second category. Unfortunately, that part is not taken care of in our Constitution. The executive executes and the judiciary interprets what the legislature enacts. If the legislature fails to come up to the expectations in work or to maintain moral standards, then the entire governmental functioning is polluted and vitiated. That is what has been happening in the country for the last several years.

In our Parliamentary Democracy the party system is supposed to work well and throw up a leader with a dedicated team of supporters to win the election and govern the country for a fixed number of years at a time. We have tried to follow the example of UK in this regard. The latter is a tiny island with a small population whereas India has a huge population with different languages, different cultures, different climates and different habits. All said and claimed it is true that the Parliamentary Democracy has worked well at the Centre with an exception during the latter half of 1970s. But it has miserably failed to deliver goods in the States. In keeping with the diversity we have a multitude of political parties in each State. There is hardly any party in the country other than Congress (I) which can claim to have an All-India status in the true sense. It is certainly the greatest weakness of our polity in the country. No one is sure as to when and where one can find an alternative to the Congress that was led by Nehru and his family members mainly due to the sacrifices they had made during freedom struggle and the leadership provided in the formative years of Free India. The circumstances and the course of events forced this nation to seek leadership from the same family. There was nothing wrong till this time. But the events of last 20-25 years lead us to believe that there is no alternative leader within Congress (I) other than members from the same family. With no alternative leader to oppose successfully within the congress or from other parties, it is almost a certainty that this country is going to have the Prime Ministers or the Presidents (as one keeps hearing) from Nehru’s family only for the next several decades if luck also favours them. Howsoever good natured and competent a particular family may be in this country, it is not necessary that they should alone rule it for ages in a succession. It is really a sad commentary on our politics and constitution. In other words it makes a mockery of the so-called people’s democracy. If 120 crores of population cannot provide an alternative leadership to this nation, we are doomed for bad days ahead. There was bold experiment some time back under the patronage and leadership of Jaya Prakash Narayan, a self-less leader and a Gandhian follower. That the said experiment collapsed like a pack of cards has become history now because of some selfish politicians again who had become power-drunk and fallen victims to the Machiavellian tactics.

Indian democracy should survive and that too in a true sense. Indian politics should be pure and simple. It should not be the exclusive domain of certain individuals, groups or families. Indian Constitution should ensure this or give way to a structural change for the better. The great ideals with which the founding fathers of the Constitution gave it to the people of India have been forgotten or neglected in implementation. It has had been badly twisted and misused to suit the convenience of some and selected few. It provides for direct election to the House of People and the State Legislature Assemblies. These two words ‘direct election’ meant a small and perfect assumption to the founding fathers but I am sure that what a catastrophe or calamity it has meant in course of time is anybody’s guess. Election in this country is the first and foremost process or activity from which almost every politician hardly gets out unblemishingly or he has to seek votes on all sorts of promises which he is sure not going to be fulfilled very soon. Promises, as one can imagine or understand, are sometimes laudable and achievable but mostly silly and unrealistic, not based on any analysis. Thus cheating becomes the number one condition for the beginning of one’s career as a public representative. Astonishingly, a glance at the Constitution reveals that there is no other role for these public representatives except to legislate on certain state policies from time to time. Ministerial posts are of course an exception; that explains the reason why sometimes more than 15 to 20% of the members had become ministers in certain State cabinets but the situation has improved with a ceiling percentage fixed as of now. The remaining 80 to 90% should not interfere in the day-to-day functioning of the government. But however, they do so. Is it a glamorous post? – a prestigious post? – a source of authority? – or a source of perks, income and exploitation? For many, I am definite, it is a source of exploitation and perks. It is a fact because they nowadays do less of legislative work and more of administrative work in many states. Many of them have no idea as to how many legislations had been passed by their predecessors and themselves and to what extent they had been accepted in the society and implemented by the bureaucrats but are anxious to step into the shoes of the senior bureaucrats and occupy their chairs, not because they are highly motivated by the scope of service but of animal comforts, perks etc. attached to them. There is hardly a state now where MLAs are not the chairmen of the public corporations and boards. They really have a hay day these days. Is it not a misuse of politics and politicians in India when it is already subjected to a mushroom growth of bureaucratic jungle over a period of time? The height of it is, as everyone is aware, the provision for pension and other benefits for public representatives too like in the case of the permanent executives. Let us await an alternative avatar viz., the Presidential form of government in the near future !!!

Reforms in Prison Administration

Hats off to the Union Law Minister, Dr. Veerappa Moily for his mission and plan in 2009 to release two lakh under trial prisoners lanquishing in jail for years, in many cases exceeding the maximum sentence for the crime. His action has indeed resulted, as appeared in the press, in the release of 5.6 lakhs undertrials on bail, 77,940 discharged and 68,744 were convicted, who in all possibility could have been released for having already served their sentences as undertrial. A great job achieved by this silent and smooth but strong reformer in action in the true sense of the term!

Thanks to the outstanding coordination effectively executed by Dr. Veerappa Moily, he could accomplish the task which his predecessors could not dare do it in the last two decades.

We wish he gets an opportunity to implement some of the basic and drastic reforms he had envisaged in his last avatar as the Head of the latest Administrative Reforms Commission of India. By the way he appears to be the most qualified and most experienced politician and an administrator in the country still luckily occupying a coveted assignment for the present when you look at his 'General Profile' on the Law Ministry's web-site.

Solitary Voice for Solid Support

Indian establishment needs a hunger strike to draw the attention of concerned authorities to a public cause nowadays. In tune with this trend the former hockey captain Pargat Singh pleads for a movement on the lines of "Save Tiger" campaign to save and rescue the national game viz the hockey. Like the game of cricket currently doing so well in the country, the hockey too was the pride of India once upon a time. But somehow it lost its charm and prime position and we are nowhere near the world champions like in the case of foot-ball.

Pargat Singh has correcly and timely raised the voice in this regard. The government and the agencies concerned should forget their local politics and self interest and start promoting and patronising the game of hockey in full swing so that the national pride is restored and the interest revived among the youth of this country. Compared to cricket, hockey like the foot-ball is a fast game deserving the attention and the involvement of everyone in India.